Some items (those classified as essentials) are not subject to VAT.

And there are some interesting stories here.

The humble Jaffa Cake was classed as a biscuit by HMC&E until a court case by McVities who demonstrated that the ingredients were the same as a cake, and they were not a biscuit at all. The government changed the rules and now VAT applies.

Also, flavoured milk drinks are not luxury items and at McD's the milk drinks (not thick shakes) are VAT-free if you take them away. (resturant meals always have VAT added)

Apparently there was a higher rate of 25% during a previous government, but this was added on certain photographic and video items but applied on their intended use. This meant that an item (eg. scissors) sold in a staionery shop could have the 15% rate but if sold for photographic use would have 25% VAT applied.

Gareth